Tuesday, 9 February 2016

Recent Buy! February 2016

     This Tuesday I had the day off, and so I had the opportunity to take a closer look at my portfolio, as well as my watchlist. After the TSX had such a rough day on Monday, falling 1.8%, I was looking forward to buying! To my relative delight, when I logged in at 10am the TSX was down another almost 2%! While it always hurts to see ones portfolio value decrease by so much in so little time, it is great to see when looking to buy.

    So I used the cash I had been holding onto in my Questrade brokerage account to buy 25 shares of Pembina Pipeline Corp.(TSE:PPL). I got them at a relative low price of $29.88. The stock price had decreased by 6.78% in the past 5 days, although only 1.56% since the start of the year.

    My position went from an average price of $41.37, to $38.31, with the 25 new shares giving me a total of 95. Currently PPL represents an approximate 7% of my portfolio.

    PPL has a monthly distribution of $0.1525, a dividend yield of 6.1% and that dividend has increased since I had last bought the stock. The 25 new shares have added $3.97 to my monthly dividend income and $47.58 to my annual dividend income. The shares were bought prior to the ex-dividend day, and so I will be seeing income from them next month!

    Currently PPL has an average rating of Buy, with a consensus price target of $43.82 from 11 analysts.

    This purchase was a bit more spur of the moment (or day) since I had the time to buy. You may have seen my Tweet saying as much earlier in the day. I think I will be able to do a second buy once again this later this month. Definitely enjoying the higher income from my new job! And will be sure to post a Watchlist before hand.

Thank you for stopping by!


  1. Replies
    1. Thank you. Nice of you to stop by and comment :)

  2. Don't know anything about this company but it's always good to average down on a position you still have faith in. Nice current yield too. I guess the pipeline biz is still alive and adjusting to low oil. As we have seen with KMI even the pipelines can suffer from low oil. Thanks for sharing.

    1. Well they seem to be doing fairly well for themselves despite oil prices crashing. For the most part the business is based on moving energy products, not extracting or selling it so they've been fine. In the last year or two they were added to the TSX60, and have been steadily raising their dividend which is generally a good sign.

  3. mfc, down another 8%
    at what point do you stop averaging down?

    1. I am very tempted to add to it more. From their financial report their core insurance business did very well, and their increased their dividend anyways. Continuing weakness from their energy sector related business is worrying though, as well as possible regulation changes in China for foreign insurance may be an issue. Will be keeping a close eye on it.